The best business debt settlement companies in Oregon are registered with the Division of Financial Regulation or represented by a lawyer licensed in Oregon, charge fees in line with Oregon law, and know how funders collect here, given the state’s limits on confessions of judgment and a homestead exemption that increased to $150,000 in 2025.
Does a debt settlement company need to be registered in Oregon to settle business debt?
Likely yes if you’re personally liable for the debt. Oregon’s debt management law defines a consumer as “an individual who is obligated or is allegedly obligated to pay a debt.” That definition doesn’t turn on whether the debt was incurred for business or personal purposes. Negotiating a principal reduction with a creditor is a debt management service, and providers “residing or doing business” in Oregon must register with the Oregon Department of Consumer and Business Services (ORS 697.612). Violating that registration requirement is a Class A misdemeanor (ORS 697.990(3)).
The definition would seem to include sole proprietors and anyone personally guaranteeing a loan or MCA, but probably not debt owed solely by an LLC without a guarantee. We couldn’t find any cases or legal guidance on the issue, so ask any company you speak with how they read the law.
How do you check a provider's Oregon registration?
Ask for the company’s Oregon NMLS registration number. Oregon registers providers through NMLS and requires a $25,000 electronic surety bond and a $350 fee. You can also confirm status with the licensing department at (503) 947-7300 or DFR.NDP.Licensing@dcbs.oregon.gov. Anyone claiming an exemption has the burden of proving it (ORS 697.652(4)(c)).
The exemption most likely to matter for debt settlement is the attorney exemption. It covers an attorney “licensed or authorized to practice law in this state, if the attorney provides a debt management service only incidentally in the practice of law” (ORS 697.612(3)(b)). It wouldn’t apply to a firm not licensed in Oregon, but Oregon lawyers in private practice with a principal office here must carry Professional Liability Fund coverage of $300,000 per claim plus $75,000 for defense expenses.
What can a registered provider charge you?
ORS 697.692 limits what registered providers can charge you. Our guide to what business debt settlement costs covers industry pricing.
| Type of fee | Maximum fee permitted by Oregon law (ORS 697.692) |
|---|
| Initial fee to company | $50 |
| Debt counseling or financial education services | $50 |
| Monthly fee if company holds funds | 15% of funds received, max $65 per month |
| Monthly fee if you hold funds in a dedicated insured account | 15% of enrolled debt, installments max $65 per month |
| Settlement fee | 7.5% of the amount of principal reduction |
If a provider overcharges you, you can void your contract and sue to get your money back plus attorney fees. You can’t waive this right. Providers can’t charge anything until they’ve given you the ORS 697.707 disclosures, including the tax implications of canceled debt and the risk that creditors keep pursuing you if the company isn’t holding your funds. It’s also illegal for a registered provider to take a confession of judgment from you (ORS 697.662(7)(c)). You have three years to sue for losses under ORS 697.718, including a claim against the bond.
How does a funder actually collect from an Oregon business owner?
Generally a funder will sue you outside of Oregon and bring the judgment into Oregon. Under ORCP 73, a confessed judgment can only be entered in Oregon if the statement is executed after the sums in it became due and only in the county where you live or can be found. So the confession in your merchant cash advance contract at funding can’t be entered here.
If a funder brings a judgment from New York to Oregon, they file it with the clerk of any circuit court and pay a filing fee of $190 under ORS 24.115. After the funder mails you notice, they can start executing five days after filing. They can then record lien abstracts in other counties where you own property. For a Portland business, the filing court is usually Multnomah County Circuit Court, which sends civil claims under $50,000 to mandatory arbitration.
Usury laws may not help, since Oregon’s cap only applies to business loans of $50,000 or less (ORS 82.010(3)(a)). See our page on whether a merchant cash advance can be usurious.
What Can a Funder Take From Me in Oregon?
As of January 1, 2025, Oregon substantially increased the exemptions from collection under SB 1595. A judgment debtor can claim a homestead exemption of $150,000, or $300,000 if two household members are judgment debtors (ORS 18.395). It attaches automatically and is indexed to the Consumer Price Index every July 1. Other exemptions include:
- Vehicle: $10,000 (used to be $3,000)
- Tools of the trade: $5,000
- Bank accounts: first $2,500 in all of your accounts at a particular bank, adjusted annually
- Wage garnishment: 75% of your disposable wages, and not less than $400 per week for wages payable on or after July 1, 2026
This should make negotiating with funders easier. Owners comparing states can see how this differs from Washington's homestead tied to county sale prices.
Frequently Asked Questions
Can a merchant cash advance funder use the confession of judgment in Oregon?
Generally no, since under ORCP 73 the statement must be executed after the sums in it became due, so the one you signed at funding cannot be entered in Oregon. Be careful if a funder asks you to sign a new confession of judgment during a workout after default.
Can a funder collect from my spouse if I am the only one who signed for the MCA in Oregon?
Oregon is not a community property state, and except as otherwise provided by statute, the property of one spouse is not subject to the debts or contracts of the other spouse (ORS 108.050). If both of you signed as guarantors, both are subject to collection, though you can then claim a $300,000 homestead.
How long does a funder have to sue me or collect from me in Oregon?
A funder has six years to sue you on a contract (ORS 12.080). After judgment, they have ten years to collect (ORS 12.070). A judgment based on a contract with an interest rate of more than 9% will continue to accrue interest at the contract rate. It is usually better to settle before judgment.
Does Oregon have a state commercial financing disclosure law like California or New York?
No. A March 2026 survey of state disclosure laws listed ten states that have them, and Oregon was not among them. Your protections come from the debt management registration law, ORCP 73 and the exemptions above.